CA Intermediate · Corporate and Other Laws · Preliminary

Meridian Traders Pvt Ltd, an Indian company, has two shareholders, Rohan and his wife Seema, each holding 50% of the paid-up share capital. Rohan's brother is a manager of the company but holds no shares. Under the Companies Act, 2013, which of the following is a correct description of the company's classification as a private company with respect to the maximum number of members?

A private company may have up to 200 members. Employees who are members, and ex-employees who became members during employment and stayed on, are not counted. Joint holders count as one member. The limit of 50 was under the old 1956 Act, so it is not the present position.

1. AIt may have at most 200 members, excluding employees who are members and persons who were members while employed and continue to be members after employment endedCorrect
2. BIt may have at most 50 members, excluding only past employees
3. CIt may have at most 100 members, with no exclusions
4. DIt may have at most 200 members, including all employee members